Saving Nickels

[Guest Cogent Design]

I've heard from multiple people and other sources that a nickel is worth about $0.11 in metals, and that the Fed is going to start phasing out pennies and nickels due to inflation and the cost of producing them. I can't seem to find an answer to what will happen with the pennies and nickels when they are no longer produced.

 

Will the government buy these coins back and melt them down for use in other products?

Say hypothetically, in ten years a nickel is worth a dollar, what is the process for turning that nickel into a dollar?

 

Lastly, are there too many pennies and nickels in circulation now to be worth anything significant in the foreseeable future?

 

For the record, I'm not saying this is the only investment avenue to take, but it is interesting.

 

Thanks...

[TripleDigitRide]

The melt value for the 1946-2013 nickel on March 01, 2013 is $0.0495150. Looks like a losing investment.

[Romad7]

Maybe it's $0.11 cost to produce them including materials/labor etc. Edited March 3, 2013 by Romad7

[xRUSTYx]

The website that will help answer any questions you may have.

 

coinflation.com

 

Outside of 40% & 90% old silver currency (junk silver)-- the only other investment in today's currency that's worth it is penny's for their copper value.  Pre 82 pennies ... Part of 82 were clad though - and the only way to tell the difference is to weight them :)

Edited March 3, 2013 by xRUSTYx

[Trekbike]

The value of the nickel appears to have change because a year or two ago the metal value was around $0.07 or $0.08. I know because I heard a podcast about the subject and checked out the coinflation website to confirm what they were saying. This was also about the time silver was taking off as well.

[Turf]

If you have the space and time to store them, it can't really hurt.  I mean, at least they will be worth what you pay for them (except maybe for inflation and then melt will become more of a factor).  There is a lot on this subject at survivalblog.com (just use the search function).  Personally, most of my "investment" money at this point is in guns in ammo...almost always can get close to the value back out (if not more), can have fun with them when I have them, and if everything goes to crap, they will be worth a good deal (only issue is ammo looses some of the value when you shoot it haha)

[gregintenn]

I think pre 82 pennies would be a better place to place your efforts if you are so inclined.

                                       http://www.parkpennies.com/penny/penny.htm

 

There is 145 pennies per pound, and they are 95% copper. The spot price for copper is $3.4805 per pound. 3.4805x.95=$3.30 per pound of pennies. The zinc spot price would be neglegible.

This makes the pre 82 penny worth roughly 2.2 cents; twice it's legal tender value.

Edited March 3, 2013 by gregintenn

[Trekbike]

Here's an article on the subject written by the guy that wrote the book Patriots.  He updated the article at the end of last year.   

 

http://www.survivalblog.com/nickels.html

 

Also, here's a comment in the article that notes the change in the metal value that I commented on in my earlier post.

 

According to www.Coinflation.com, the 1946-2011 Nickel (with a 5 cent face value) had a base metal value of $0.0733 in February, 2011. That was 146.7% of its face value. Because of the global recession and the fact that both nickel and copper are primarily industrial metals, the melt value of a nickel declined to just $0.0498 in June, 2012. But I predict that as inflation resumes--most likely beginning in 2013--the base metal value of nickels will rise substantially, regardless of the weakness in the industrial economy.

[Will H]

If someone was looking for an investment within our current financial situation I would think the old solid copper pennies would be best.  As a hedge against SHTF I personally think money, even gold would be a worthless investment when compared to things that can be eaten or used to get food.

[Stegall Law Firm]

All metals have been down the last few months.  Could be less industrial demand due to economic uncertainty (but that's not stopping the Dow or S&P), could just be that the gold bull market is coming to an end or just taking a breather.  I bought some $100 boxes of nickels at the bank in 2011, and I think the highest it got on coinflation was $142.  So that was a nice, brief, theoretical 42% return.

 

Eventually, when they debase the nickel, the prices of the old ones will go up.  But that could take a while.  But nickels aren't a bad buy and hold small-time investment.  I may buy some more, but personally I prefer silver.  Those nickels are just so bulky. 

 

A while back there was a story about one of the guys who made a shitload in the housing market crash, he was one of the few who saw it coming and took opposite (short) positions on the credit default swaps.  He literally became a billionaire out of it.  He had made a huge purchase of nickels, like several tons. 

[UncleJak]

I prefer silver. Or wooden nickels...

[Jonnin]

There are better buys than money to get scrap metal; if you pay attention you can even find it free for the price of picking it up and hauling it off.

[Guest Cogent Design]

Like I said before, it's not the best investment avenue, but certainly a unique idea.

 

Where would I take nickels (assuming they're antiquated) or other scrap metals to get paid for them?

 

Thanks for all the replies!

Edited March 4, 2013 by Cogent Design

[Guest ab28]

I don't think you could sell a sack of pennies for scrap, something about destroying US currency or something. 

[enfield]

Maybe it's $0.11 cost to produce them including materials/labor etc.

 

I'd bet that's true, if the scrap value is 4.9 cents.  

 

If the Gov's losing money minting nickels, what do they care?  It ain't their money being wasted.  All of those bronze dollars are sitting in a warehouse somewhere.